sub contractors

[legendrider]

since im new and working alone with just the basic eqipment, how does the Sub process work. Id like to farm out the more high risk jobs to larger companies wtith the proper equipment. so how does that work?

 

[Stumper]

It works very well, adequately, or poorly. If you are a one man show who occassionally contracts a climber or groundman to help you then it is pretty straightforward.-Agree on how the contract labor is to be paid and then call them and schedule as needed. If you are trying to sub jobs beyond you ability to a bigger company it CAN work. The difficult issues are: 1. How does the bigger outfit feel about up-and-coming competition? and 2. How well are you doing at bidding? Nobody wants to come work for half their normal rate and give a commission to the finder. If you aren't competent to do the job most competent companies don't want to treat you as the prime with them as the sub. There are plenty of exceptions however. I would suggest that you go talk to the people whom you think are better equipped/more competent and see if you can work out an agreement and a plan before you ever bid on jobs you don't want.

 

[NeTree]

What Justin said.

If they're providing all the equipment and the technical expertise, they won't be happy splitting the job 50-50, etc.

 

[legendrider]

one more

i was only thinking that they mark up there price and give like 20-25 percent for selling the job

 

[NeTree]

Rarely would a job come along that could afford that; I'd be more inclined to toss 10% at the outside.

 

[TreeJunkie]

Agree to that.

Most i can usually justify handing out would be in the range of about 10%. Most would rather you just hand them over the lead and allow them to sell the work. This way discrepencies won't arise do to misbid work, etc...

 

[NeTree]

Good point... it takes experience to bid effectively.

 

[Koa Man]

The best experience I ever had subcontracting a job was a removal for a government agency. I was the only contractor who showed up for the bid inspection. It was at the edge of a forest, partially growing over a house. No hauling was involved. Get it down and leave debris on site. I submitted a bid of $8995.00. I subbed it out for $1200.00. The company I subbed it to sent one climber and one groundman. It took them 2 days. I did have to be on site during the whole job, but hey, $487.19 an hour ain't bad for standing around and drinking coffee, although I did have to hold the rope now and then.

 

[John Paul Sanborn]

I would add that you should know the company before you sub work to them. There are huge trust issues here as far as future work. I've know of a few occasions where one of the bigger companies in MKE went and did some IPM work for a little guy and then snapped up the trim work that he was doing.

If the job is too big for you and there is no other work on the property then maybe you would want to just pass the lead on to a company you have a relationship with, for the finders fee.

What I do on big jobs is sub people in for bucket work and chipping, I know what they want for a day rate so I use that in my bidding, 1000 for the chipper and 2 guys, 900 for the bucket and operator, 500 for me, 150 to haul wood...plus tax.

 

[NeTree]

Tax?

 

[treeman45246]

Sales tax... it's a requirement here, but not everywhere.

 

[TreeJunkie]

I would add that you should know the company before you sub work to them. There are huge trust issues here as far as future work. I've know of a few occasions where one of the bigger companies in MKE went and did some IPM work for a little guy and then snapped up the trim work that he was doing.

.

GOOD POINT! I unfortunately had to see how this worked first hand, when i was working for my former employer. While his brother was out of town my employer would take care of his bro's clients. My employer was collecting 100% on all the jobs. The salesman were also representing themselves and stealing the other companies clientle. Pretty well pissed me off to see this kind of thing going on. I don't see how family could do that to one another. The only explantation i could get was that this was the cost of going out of town. Sheesh! I know i'll never sub my work out to you!

 

[Stumper]

They were brothers? Running competing tree companies? Weird-but then.... there are several tree services in a nearby city which have differring names and listings in the phone book but they are all members of the same extended family. They work together to fix prices- "Yep, got 3 estimates this guy was cheapest by $20."

 

[TreeJunkie]

Stumper,
There is actually 4 different companies here in K.C. all w/ owners sharing the same last name.
However i don't see it working quite like that. Everyone has there niche and a couple work different areas.

Grandfather just wrapped up his business a few years ago; two uncles , and two nephews, or brothers. however you wanna put it...

 

[John Paul Sanborn]

...While his brother was out of town my employer would take care of his bro's clients. My employer was collecting 100% on all the jobs. The salesman were also representing themselves and stealing the other companies clientle. ...

Is this the uncle I know????

I take it that was not the agreement? They do share shops....

 

[TreeJunkie]

I'm not too sure who you mean....


It all seems kinda fuzzy right now :angel: